An initial public offer or IPO refers to the first time a company’s shares are listed on a stock exchange for trading and investment. Companies opt for IPO to raise capital through equity investment. Investors after a successful IPO allotment status can earn exponential returns. Swiggy is one such company coming with its IPO and has applied with SEBI. Being a leading food delivery solutions company, Swiggy IPO is one of the most anticipated IPOs that investors are eagerly waiting for. With a high valuation, Swiggy IPO will attract investment from foreign investors, employees, high-net-worth individuals, and retail investors alike. Following is some information about Swiggy and its upcoming IPO:
Swiggy’s Growth and Evolution
Swiggy as a company was founded in the year 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. The company was the first-of-a-kind tech unicorn that aimed at serving customers in India by providing food delivery solutions right at their doorstep. With years of hardware and operations, Swiggy has grown to become one of India’s largest online food delivery platforms. The company offers food and grocery delivery services and has started to offer solutions like pick and drop services and cloud kitchens. This has enabled the company to maintain a strong footing in the competitive Indian business landscape. The company offers fast food delivery solutions, a reliable food application, and has the best restaurant partnerships allowing it to serve thousands of customers and maintain profitability.
Swiggy IPO
- IPO Size
Swiggy aims to Launch its IPO for ₹11,600 crores which will allow the company to achieve a huge capital outlay in the form of equity investment. The company aims to use the capital for business expansion, diversification, and investment to improve its overall services and business offerings. Moreover, the IPO includes a fresh issue of new shares of value ₹3250 crores and the rest are offer for sale.
- Leading banks
Kotak Mahindra Capital, J.P. Morgan India, Jefferies India Private Ltd, Citigroup Global Markets, ICICI Securities Ltd, and Avendus Capital are some of the leading banks who are responsible for IPO issue allotment and management.
- Swiggy strengths
- Swiggy offers food delivery services, in-app payment services like UPI, restaurant dining booking service, pick and drop, and grocery delivery solutions.
- The company has a strong user base and aims to increase its offerings to deliver better and more services.
- The company even aims to use AI-driven technology to offer recommendations for food and restaurants.
- The revenue from operations has increased to ₹11,247 crores in 2024 from ₹5,704 crores in 2022.
Conclusion
The Swiggy IPO is expected to be one of the best IPOs that have attracted investor attention. Despite falling profits and competition from other companies like Zepto and Zomato, the company aims to increase its business offerings, services, and overall profitability through this IPO. Investors must, however, assess both the opportunities and risks associated with Swiggy are IPO and make appropriate decisions before investment. Analysing various strengths and weaknesses, the best decision can be made regarding investment in the Swiggy IPO.
